Need A Printable Format? Click Here!

Adanac Molybdenum Arranges Debt Financing

2007-10-17 07:29 PT - News Release

Mr. Michael MacLeod reports:

ADANAC ENGAGES INVESTMENT BANK FOR RUBY CREEK DEBT FINANCING

Adanac Molybdenum Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) is pleased to announce it has entered into an engagement letter with a U.S. investment bank to act as the Company's exclusive agent and manager in respect of a proposed financing of debt and convertible debt securities.

As currently contemplated, the debt financing transaction would involve approximately US$450 million of senior notes and US$150 million of convertible debentures. The aggregate amount and composition of the securities to be sold may vary from those currently contemplated. Technical and commercial due diligence work is under way. The engagement letter is not a commitment by the U.S. investment bank to purchase any securities and there can be no assurance that the debt financing transaction can be completed in the amounts currently contemplated or at all.

The engagement letter provides that, in the event of a change of control of the Company prior to the completion of the contemplated debt financing transaction, a sliding scale break-up fee of 15% of the difference between the market capitalization of the Company as of October 15, 2007 and the date of the change of control transaction will be payable by the Company. The break-up fee will not be greater than US$12,500,000 or less than US$2,500,000.

The securities to be offered and sold have not been be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, unless registered thereunder or unless an exemption from registration is available.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Michael MacLeod, President and Chief Executive Officer

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

We seek Safe Harbor.

View More Press Releases

www.adanacmoly.com

Corporate Profile by Secular Bull

Interested in any future Private Placements with this company? Click here!